Lloyds Bank Overdraft Charges -Charged £6 usage fee

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aza93
aza93 Posts: 3 Newbie
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in Budgeting & bank accounts
Hi,

Fir time posting here, so apologies of I'm posting this in the wrong section. I'm a Lloyds banking customer with a big overdraft which now means that I have to pay about £90 a month as a result of the changes made at the start of the month. Just finished my master's and now in full time work so I'm fortunate enough that I should be out of my overdraft soon.

I've noticed Lloyds have taken a £6 overdraft usage fee and have also taken £32 yesterday for interest. Should I be paying these fees this month? I plan to go into my branch on Monday but I thought I'd ask in here first to see if it's been correctly taken or not.

If anyone could help it would be greatly appreciated

Thanks,

Aaron
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  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    Some of the fees will be from October (a month in arrears), and some accumulating daily from the implementation of the new charges in November.


    Going forward you'll just have the new charges.
  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    aza93 wrote: »
    Hi,

    Fir time posting here, so apologies of I'm posting this in the wrong section. I'm a Lloyds banking customer with a big overdraft which now means that I have to pay about £90 a month as a result of the changes made at the start of the month. Just finished my master's and now in full time work so I'm fortunate enough that I should be out of my overdraft soon.

    I've noticed Lloyds have taken a £6 overdraft usage fee and have also taken £32 yesterday for interest. Should I be paying these fees this month? I plan to go into my branch on Monday but I thought I'd ask in here first to see if it's been correctly taken or not.

    If anyone could help it would be greatly appreciated

    Thanks,

    Aaron

    Not true or you are being overcharged: Lloyds bank did away with the £6/month overdraft usage fee and fees are now a flat £0.01 per day per £7 borrowed. According to Lloyds Banking Group if you are always in overdraft you will now be paying less or in their words a "winner".
    https://www.moneysavingexpert.com/news/banking/2017/11/halifax-and-lloyds-overdraft-changes---the-winners-and-losers
  • Mr_Goodkat
    Mr_Goodkat Posts: 432 Forumite
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    Anthorn wrote: »
    Not true or you are being overcharged: Lloyds bank did away with the £6/month overdraft usage fee and fees are now a flat £0.01 per day per £7 borrowed. According to Lloyds Banking Group if you are always in overdraft you will now be paying less or in their words a "winner".
    https://www.moneysavingexpert.com/news/banking/2017/11/halifax-and-lloyds-overdraft-changes---the-winners-and-losers

    It is true.

    Usage fees and interest were charged a in arrears prior to the change so will relate to the period prior to the new charges. From the start of November charges are calculated and deducted daily so this should be for the OP the last monthly fee and big interest charge in one go instead they will be paying daily.
  • StokieBecks
    StokieBecks Posts: 4,997 Forumite
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    Since November you will have paid a daily fee but you also will have paid your usual lump sum at the start of November and December as your overdraft charges were always charged in arrears. From now on it will just be the daily xharge
    £2 Savers Club for 2022 #12
  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    Mr_Goodkat wrote: »
    It is true.

    Usage fees and interest were charged a in arrears prior to the change so will relate to the period prior to the new charges. From the start of November charges are calculated and deducted daily so this should be for the OP the last monthly fee and big interest charge in one go instead they will be paying daily.

    No. It was charged at the end of the statement period. So fees charged in December relate to November not October. If they relate to October then Lloyds bank must be leapfrogging over a month, alternatively charging two months in arrears which I know they don't do.

    Just to be sure I looked at my current account and credit card in Lloyds Online Banking and sure enough all charges, fees and interest relate to November, not October.
  • Dobbibill
    Dobbibill Posts: 4,136 Ambassador
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    Anthorn wrote: »
    No. It was charged at the end of the statement period. So fees charged in December relate to November not October. If they relate to October then Lloyds bank must be leapfrogging over a month, alternatively charging two months in arrears which I know they don't do.

    Just to be sure I looked at my current account and credit card in Lloyds Online Banking and sure enough all charges, fees and interest relate to November, not October.

    Hi Anthorn - old charging structure was from 2nd day of one month until 1st day of following month - customers get notification of charges after that and the charges debit on 1st of following month.

    Ie 3rd Oct to 1st Nov debit on 1st Dec.

    OP - this is the last usage fee that will debit now that the overlap period is done.
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  • Mr_Goodkat
    Mr_Goodkat Posts: 432 Forumite
    edited 5 December 2017 at 7:58PM
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    Anthorn wrote: »
    No. It was charged at the end of the statement period. So fees charged in December relate to November not October. If they relate to October then Lloyds bank must be leapfrogging over a month, alternatively charging two months in arrears which I know they don't do.

    Just to be sure I looked at my current account and credit card in Lloyds Online Banking and sure enough all charges, fees and interest relate to November, not October.

    Wrong again!

    Poster above has explained how the usage charge and interest relates to the period before the new charges started.
  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    edited 5 December 2017 at 9:18PM
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    Dobbibill wrote: »
    Hi Anthorn - old charging structure was from 2nd day of one month until 1st day of following month - customers get notification of charges after that and the charges debit on 1st of following month.

    Ie 3rd Oct to 1st Nov debit on 1st Dec.

    And i.e. 3rd Nov to1st Dec.

    Therefore I was correct: The old charges don't appear on December statements. At least not on mine! As I said, for October charges to be on the December statement Lloyds would have to be charging two months in arrears!
  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    Mr_Goodkat wrote: »
    Wrong again!

    Poster above has explained how the usage charge and interest relates to the period before the new charges started.

    ... on the November statement. The December statement details November charges. That is unless my accounts are different to everyone else's which I doubt.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    From a version of the old account T&Cs...
    Other charges, such as the Monthly Overdraft Usage Fee, overdraft interest or Unplanned Overdraft Daily Fees, are worked out at the end of the monthly billing period and we’ll always let you know the amount before they are taken from your account.

    http://www.lloydsbank.com/assets/media/pdfs/m60167-bankingcharges.pdf
    So they work out October's charges at the end of the first working day of November, then tell you what they are and when they'll take 'em...which is a month later at the end of the first working day in December.

    So they are, in effect, 2 months in arrears.

     Agree now?...or still think you're a special case? ;)
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